Maharashtra pushes for petroleum products under GST

Shiv Kumar

Tribune News Service

Mumbai, September 11

The Maharashtra government wants petroleum products, including petrol and diesel, to come under the purview of the Goods and Services Tax (GST).

Maharashtra's Finance Minister Sudhir Mungantiwar said the state government has already indicated to the GST Council comprising representatives of all the states and the Central Government about its support for such a measure.

According to Mungantiwar, some of the Congress-ruled states were opposed to bringing petroleum products under the Goods and Services Tax. The minister who has been pushing for this measure ever since the Narendra Modi government began working on rolling out a common goods and services tax across the country said the GST Council will discuss this measure at its meeting in New Delhi on September 28.

"The Maharashtra government will surely back any proposal to include petroleum products under the Goods and Services Tax," Mungantiwar told reporters here.

Meanwhile, state government sources said Maharashtra would not reduce Value Added Tax on petrol which, at 25 per cent, is the highest in the country. VAT on diesel is comparatively lower at 20 per cent. In addition to VAT, the state government also levies cess of Rs 9 and Re 1 on petrol and diesel, respectively.

The Maharashtra government had earlier withdrawn a 'drought cess' which was levied on petrol.

Meanwhile, petrol prices broke the psychological level of Rs 90 to touch Rs 90.11 per litre in Maharashtra's Parbhani district today.